Sensex, Nifty Set To Open On Flat Note

Indian shares look set to open flat to slightly lower on Tuesday after six consecutive sessions of gains.

There are mixed catalysts, with a measure of India's manufacturing activity surging to an 11-month high in November, while oil extended strong gains from the previous session on expectations of OPEC-led production cuts.

The upside, if any, may remain limited as investors look for signals from the RBI monetary policy committee meeting starting later today and results of the recent assembly elections due on December 11.

The RBI will likely keep interest rates unchanged and consider changing the stance back to neutral in view of subdued inflation and a dramatic fall in oil prices in recent times. Oil prices have fallen about 30 percent since the last RBI policy in October.

Benchmark indexes Sensex and the Nifty ended marginally higher on Monday to extend gains for a sixth consecutive session.

The rupee, however, fell as much as 88 paise to close at 70.46 against the dollar, snapping its four-day winning streak and marking its biggest single-day loss in more than three months on the back of dollar strength, weak GDP data and firming global oil prices.

Asian stocks are broadly lower this morning and the dollar weakened further against its major peers, while U.S. crude futures extended gains after ending up around 4 percent on Monday.

Overnight, U.S. stocks posted strong gains as investors cheered a temporary truce in the escalating U.S.-China trade dispute. The Dow and the S&P 500 rallied around 1.1 percent while the tech-heavy Nasdaq Composite climbed 1.5 percent.

European markets also ended Monday's session firmly in positive territory, with banks, miners and automakers leading the surge.